Why long-term renters are buying homes in cities they’ll never live in

Individuals are taking a leaf out of institutional investors' strategy book when it comes to home buying

TRD WEEKEND EDITION /
Aug.August 18, 2018 02:06 PM

(Credit: Zache, Pixabay)

When buying a house in your own city is too expensive, find another city. The concept is finding traction among a growing number of would-be home buyers priced out of their own cities.

The idea, according to the Wall Street Journal, is based on the strategy institutional investors followed after the housing market crashed when they snapped up single-family homes across the country at rock-bottom prices.

Similarly, with the aid of new real estate tech platforms, individuals are now employing the same tactic in growing numbers: resigning themselves to being renters in ultra-pricey markets like San Francisco where they live, these investors then buy single-family homes in cities like Las Vegas, Wichita, Memphis and Baltimore and rent them out.

The cities these “long-distance landlords” buy into have strong rental markets and often courts and laws that favor landlords over tenants. [WSJ]Erin Hudson


Related Articles

arrow_forward_ios
Brokerage firms are strategizing ways to make up losses after the cost of application fees was capped at $20. (Credit: iStock)

Brokerages on rental application fee cap: “It hurts”

Alex Rodriguez (Photos by Guerin Blask)

A-Rod is coming for NYC and SoFla real estate

There will be 70 agents based at the new office (Credit: iStock)

Compass opens Long Island City office as new-development sales surge

The Daily Digest - Tuesday

New life for Toys “R” Us, Masa Son is “embarrassed” with the Vision Fund: Daily digest

Nooklyn CEO Harley Courts (Credit: iStock)

Brokerage slashes agent commissions, delays payments after rent law change

The Daily Digest - Tuesday

NYC apartment prices hit 4-year low, Pacific Park developers reveal new plans: Daily digest

LeBron wanted it and California’s governor signed it. What the college athlete compensation law means to real estate

Racial inequality in homeownership across US is sharpest in New York: report

arrow_forward_ios